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Key Facts: Higher Accounting Exam

170 marks

Total course assessment (130 paper + 40 assignment)

Qualifications Scotland course specification

3 hours

Question paper duration

Qualifications Scotland

SCQF Level 6

Higher qualification level

SCQF framework

100

Free practice questions here

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Higher Accounting is a 170-mark SCQF Level 6 course assessed by a 3-hour question paper plus a 40-mark assignment. It develops technical bookkeeping, final accounts preparation, ratio interpretation, and decision-making skills using marginal costing, budgeting, and variance analysis.

Sample Higher Accounting Practice Questions

Try these sample questions to review concepts for the Higher Accounting exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Using DEAD CLIC, which side of an account records an increase in an expense?
A.Debit
B.Credit
C.Neither (expenses are not in the ledger)
D.Both sides simultaneously
Explanation: DEAD = Debit increases Expenses, Assets and Drawings. CLIC = Credit increases Liabilities, Income and Capital. An increase in any expense is therefore recorded on the debit side of the account.
2A business pays £400 cash for office rent. What is the correct double entry?
A.Dr Rent £400, Cr Cash £400
B.Dr Cash £400, Cr Rent £400
C.Dr Rent £400, Cr Capital £400
D.Dr Cash £400, Cr Bank £400
Explanation: Rent is an expense, which increases on the debit side (DEAD). Cash is an asset that decreases on the credit side. So debit Rent £400 and credit Cash £400.
3Which book of prime entry records credit sales of goods?
A.Sales day book
B.Cash book
C.Sales returns day book
D.General journal
Explanation: The sales day book lists invoices issued for credit sales of goods only. Cash sales go through the cash book, returns go through the sales returns day book, and one-off items use the general journal.
4A three-column cash book has columns for cash, bank and which third item?
A.Discount
B.VAT
C.Drawings
D.Capital
Explanation: The three-column cash book has memorandum discount columns alongside cash and bank. Discount allowed sits on the debit side and discount received on the credit side; totals are posted to the discount accounts in the nominal ledger.
5The petty cash imprest is £150. During the month £128 was spent. How much is reimbursed at month end to restore the imprest?
A.£128
B.£150
C.£22
D.£278
Explanation: The imprest system restores the float to its original level by reimbursing exactly the amount spent. £128 was spent, so £128 is paid in to bring the float back to £150.
6Which ledger contains the personal accounts of credit customers?
A.Sales ledger
B.Purchases ledger
C.Nominal ledger
D.Private ledger
Explanation: The sales (or receivables) ledger holds an account for each credit customer (debtor). The purchases ledger holds creditor accounts, the nominal ledger holds impersonal accounts, and the private ledger holds confidential accounts such as capital and drawings.
7A trial balance is extracted and the totals agree. Which of the following errors will it still NOT reveal?
A.A purchase of a van debited to Motor Expenses
B.A sale recorded as £100 in one account and £10 in the other
C.A single-sided posting to Rent only
D.An addition error on the sales account
Explanation: Debiting Motor Expenses instead of Motor Vehicle is an error of principle. Both sides of the entry are equal in value, so the trial balance still balances. The other three create unequal totals and would be picked up.
8A sale of £250 was credited to Sales as £520. What type of error is this?
A.Original entry
B.Omission
C.Commission
D.Compensating
Explanation: An error of original entry occurs when the wrong figure is entered at source, even though the double-entry is correctly applied. The £520 was used on both sides, so totals still agree, but the value is wrong.
9A trial balance shows a debit total of £52,400 and credit total of £52,260. The £140 difference is placed in a suspense account on which side?
A.Credit side
B.Debit side
C.Both sides
D.Neither — it is ignored
Explanation: The credit side is short by £140, so a credit balance of £140 is opened in the suspense account to make the trial balance agree. As errors are found, journal entries clear the suspense balance.
10A complete reversal of entries means that a transaction has been:
A.Debited where it should be credited and vice versa
B.Entered twice on the same side
C.Forgotten entirely
D.Posted to the wrong customer in the sales ledger
Explanation: A complete reversal records the debit on the credit side and the credit on the debit side. The trial balance still balances because both sides are equal, but the accounts show the opposite of reality.

About the Higher Accounting Exam

Higher Accounting (course code C800 76) is offered by Qualifications Scotland (formerly SQA) at SCQF Level 6. The course covers Financial Accounting and Management Accounting, and is assessed through a 130-mark question paper lasting 3 hours plus a 40-mark assignment.

Exam sponsor: Qualifications Scotland (formerly SQA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

3 hours (question paper) plus assignment

Passing Score

Grade A-D is a pass; A 70%+, B 60%+, C 50%+, D 40%+

Exam / Certification Fees

Entry fees set by centre; SQA per-subject entry approximately £15-£20

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~25%

Financial Accounting Fundamentals

Double-entry bookkeeping (DEAD CLIC), books of prime entry, ledgers, trial balance, errors not shown by trial balance, suspense accounts, bank reconciliation

~25%

Final Accounts

Sole trader income statements, year-end adjustments, statements of financial position, partnership appropriation and capital/current accounts, limited company accounts, manufacturing accounts

~20%

Analysis and Interpretation

Profitability, liquidity, efficiency, gearing and investor ratios; horizontal and vertical analysis; interpretation in context; limitations of ratio analysis

~20%

Management Accounting

Cost classification, marginal costing, contribution, break-even analysis, absorption costing, overhead apportionment and absorption, profit reconciliation, service and activity-based costing

~10%

Budgeting and Variances

Functional and cash budgets, flexible budgets, standard costing, sales/material/labour/overhead variances, reasons for variances

Preparing for the Higher Accounting Exam

What You Need to Know

  • Passing score: Grade A-D is a pass; A 70%+, B 60%+, C 50%+, D 40%+
  • Exam length: 100 questions
  • Time limit: 3 hours (question paper) plus assignment
  • Exam / certification fees: Entry fees set by centre; SQA per-subject entry approximately £15-£20 Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

Higher Accounting: Suggested Study Strategy

1Memorise the DEAD CLIC mnemonic and practise journal entries until debit/credit becomes automatic — this underpins every calculation question
2Learn ratio formulae exactly as Qualifications Scotland publish them (current ratio, acid test, gearing, ROCE) — marks are awarded for the correct formula even when arithmetic slips
3Drill break-even, contribution and variance calculations on past papers — these calculation marks are the highest-yield part of the Management Accounting unit
4Use the SQA Understanding Standards site to see how marks are awarded for extended-response interpretation questions

Frequently Asked Questions

Who awards Higher Accounting?

Higher Accounting is awarded by Qualifications Scotland (formerly SQA). The course code is C800 76 and it sits at SCQF Level 6.

How is Higher Accounting assessed?

Assessment is in two parts: a 130-mark question paper lasting 3 hours, plus a 40-mark externally marked assignment. Total course assessment is out of 170 marks.

What grade is needed to pass Higher Accounting?

Grades A-D are pass grades. A is roughly 70%+, B 60%+, C 50%+, D 40%+. Grade boundaries are adjusted each year by Qualifications Scotland after standardisation.

What are the two units in Higher Accounting?

The course has two units: Financial Accounting (final accounts, bookkeeping, ratio analysis) and Management Accounting (costing, budgeting, variances). Both feed into the single 130-mark question paper.